Deal #5700

Land area

Size under contract (leased or purchased area)

[2015-02-05, current] 2320.0 ha

Comment on land area

The Kari Pump Open Pit will fall under the exploitation permit for the Houndé Gold Mine. The extension application is being processed by the Burkina Faso Mining Administration and is scheduled for completion by July 2020. The Kari Pump deposit is on the Kari Nord exploration concession and the exploration permit (Decree 2014-000244/MME/SG/DGMG) is held by Burkina Faso Gold SARL (100.00% held by EDV).

Intention of investment

[2015-02-05, current] Mining (2320.0 ha)

Nature of the deal

Exploitation permit / license / concession (for mineral resources)

Negotiation status

[2015-02-05, current] Concluded (Contract signed)

Comment on negotiation status

The Houndé Exploitation permit was granted to HGO on February 5, 2015 covering 23.20km2 and is valid until February 5, 2035 and may be renewed for consecutive five-year periods until deposits are depleted.

Implementation status

[2016] Startup phase (no production)
[2017-11-01, current] In operation (production)

Comment on implementation status

Houndé achieved the first gold pour on October 18, 2017. Commercial production was declared on November 1, 2017.

Leasing fees

Comment on leasing fee

A royalty on the exploitation permit is owed to the Government of Burkina Faso based on a 3% to 5% sliding scale linked to prevailing gold prices

Contract farming

No